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CHAPTER IV
LIMITATION OF SHIPOWNER'S LIABILITY

IN order to lessen the liability of a shipowner for damages
through loss or injury arising at sea, the legislature has
imposed limitations upon the amount which may be
recovered in certain actions against a shipowner. These
limitations are contained in Sects. 502-509 of the Merchant
Shipping Act, 1894, as amended by subsequent statutes, and
the Merchant Shipping (Liability of Shipowners & Others)
Act, 1958; the provisions of these sections are unaffected by
the Carriage of Goods by Sea Act, 1924, which, to a certain
extent, however, increases the liabilities of the shipowner by
preventing him from contracting out of certain of his
defined liabilities (see Chapter VI). It is the purpose of this
chapter to summarize the provisionsoftheMerchant Shipping
Acts relative to the limitation of the shipowner's liability.
The owner of a British sea-going ship, or any share
therein, is not liable to make good to any extent whatever
any loss or damage happening without his actual fault or
privity in the following cases; namely—

(1)  Where any goods, merchandise, or other things what-
soever taken in or put on board his ship are lost or damaged
by reason of fire on board the ship; or

(2)  Where any gold, silver, diamonds, watches, jewels,
or precious stones taken in or put on board his ship, the
true nature and value of which have not at the time of
shipment been declared by the owner or shipper thereof
to the owner or master of the ship in the bill of lading or
otherwise in writing, are lost or damaged by reason of
any robbery, embezzlement, making away with, or secret-
ing thereof.

The owners of a British or foreign ship are not liable
beyond certain specified amounts where all or any of the
following occurrences take place without their actual fault
or privity—

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